Chapter 15, Problem 1DQ

To determine

Introduction:

• Short-term investments:

  Investments which are made for a period of less than 12 months are called short-term investments.

• Current assets:

  Current assets are assets which are either cash or realizable in cash in short-term period. Current assets include cash, cash equivalents, short-term investments, accounts receivables.

Two conditions under which an investment should be classified as current assets.